首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Accounting information is expressed primarily in monetary terms. The monetary unit is the prime means of measuring assets. This
Accounting information is expressed primarily in monetary terms. The monetary unit is the prime means of measuring assets. This
admin
2013-12-25
39
问题
Accounting information is expressed primarily in monetary terms. The monetary unit is the prime means of measuring assets. This measure is not surprising given that money is the common denominator in business transactions. In the United States, the monetary unit is the dollar; in Great Britain, the pound sterling; in Japan, the yen. The stable-monetary-unit concept provides an orderly basis for handling account balances to produce the financial statements.
Unlike a liter, a foot, and many other measurements, the value of the monetary unit may change over time. Most of us are familiar with inflation. Groceries that cost $50 three years ago may cost $60 today. The value of the dollar changes. In view of the fact that the dollar does not maintain a constant value, how does a business measure the worth of assets and liabilities acquired over a long span of time? The business records all assets and liabilities at cost. Each asset and each liability on the balance sheet is the sum of all the individual dollar amounts added over time. For example, if a company bought 100 acres of land in 1975 for $60,000 and another 100 acres of land in 1992 for $300,000, the asset of land on the balance sheet carries a $360,000 balance, and the change in the purchasing power of the dollar is ignored. The stable-monetary-unit concept is the accountant ’ s basis for ignoring the effect of inflation and making no restatements for the changing value of the dollar. Let’ s look at the short-comings of this concept. Suppose another company paid $ 600,000 for the same 200 acres of land in 1992. Its land would be the same as the preceding company ’ s land, but its balance sheet would show a much higher amount for the land. How do we compare the two companies’ balance sheets? The comparison based on the stable-monetary-unit concept may not be valid because mixing dollar values at different times is like mixing apples and oranges.
What is the stable-monetary-unit concept?
选项
A、It is the prime means of measuring assets.
B、It is the common denominator in business transactions.
C、It is an orderly basis for handling account balances to produce the financial statements.
D、It is monetary terms in accounting information.
答案
C
解析
文章第一段最后一句提到The stable—monetary—unit concept provides…produce the financial statements.货币计量单位的理念,使处理账户余额,生成财务报表能够有序进行。
转载请注明原文地址:https://kaotiyun.com/show/Jmid777K
本试题收录于:
FECT综合(现代金融业务)题库金融英语(FECT)分类
0
FECT综合(现代金融业务)
金融英语(FECT)
相关试题推荐
YouareinterestedinClassicalMusic,soyoucanwatchTVat______.
Mr.Reeceisinterestingoldman.Mr.Reeceworked【C1】______afarm.Heandhiswife【C2】______alotofthingsandtheyhadsomec
A、Bycar.B、Forsomeinformationabouttravel.C、InNewYork.B
In1826,aFrenchmannamedNiepceneededpicturesforhisbusiness.Buthewasnotagoodartist.Soheinventedaverysimplec
Vacation(休假)timecanbeassimpleasjusttimeawayfromwork.Youmayjustwantto【C1】______homeanddonothing.Thereisnothi
A、No,youcanuseyourcreditcard.B、Yes,youcanuseyourcreditcard.C、Yes,youcannotuseyourcreditcard.B
A&DLtd.providesyouwiththefollowinginformationforthetwoyearsended31Decemberyears2002and2003.BalanceSheeten
Whatcreditriskassessmentisinvolvedinsoleproprietorshipandpartnershipcompanyloan?
随机试题
材料一:农业基础仍然薄弱,最需要加强;农村发展仍然滞后,最需要扶持;农民增收仍然困难,最需要加快。我们必须居安思危、加倍努力,不断巩固和发展农村好形势。实现全面建设小康社会的宏伟目标,最艰巨最繁重的任务在农村,最广泛最深厚的基础也在农村。
木香具有止痛作用,最适用于
建立自动冲洗机质量控制标准的叙述,不正确的是
结核菌素试验阴性可见于
高强度混凝土是指硬化后强度等级不低于C60的混凝土,其水泥和矿物掺和料的总量不应大于()。
一国在进行国际经济交往时,其国际收支比较理想的状态是()。
公安机关对中国公民出入境管理的对象包括()。
下列关于我国法的溯及力的表述,正确的是()。(2009年单选14)
设α是n维单位列向量,A=E-αT.证明:r(A)<n.
中断是(69)。
最新回复
(
0
)